The local share market is likely to open weaker after a rally on Wall Street came to an end as US investors reacted cautiously to the latest batch of economic data.
Optimism continued to drive buying on the Australian share market yesterday. The S&P/ASX 200 Index finished 65 points higher to 4,715 and on the futures market the SPI200’s down 20 points.
Checking currencies at 8:30 AM the Aussie Dollar is lower against the US and is 87.2 US cents, 79.49 Yen, 59.17 Euro cents and 53.02 Pence Stirling.
On the economic front, the Melbourne Institute bulletin of Economic Trends for September is due for release today.
In company about this morning:
BHP Billiton (ASX:BHP) shares closed stronger yesterday, up 1.51% to $39.59. The miner has reportedly agreed to a deal allowing for the major expansion of coal exports at Newcastle Port – potentially ending ship queues and feuds over access to the port. The Australian Financial Review reports Newcastle’s second coal terminal, being built by the BHP – owned Newcastle Coal Infrastructure, is expected to load its first shipment of coal in the new year. Thousands of jobs will be supported by the plan and coal export revenue is expected to be lifted by $6.5 billion per year by 2016. BHP Billiton’s net profits had been rising each year up until 2009, when the result came in at about a third of what it was in 2008. Telstra shares gained yesterday, adding 0.62% to $3.26. Telstra might postpone the break up of its operations under the government’s plan to force the company to back the $43 billion national broadband network. The Australian Financial Review reports that Telstra could take up until 2018 to transfer its fixed-line assets to a separate entity or the government’s own network, known as structural separation, after it reaches as agreement with the government. Telstra’s net profits have been rising since 2006.
Checking ex-dividends and Austal is among those going today with a 6 cent fully franked dividend. Also going are Centennial Coal, 4 cent fully franked and Webjet with a 3.5 cent fully franked dividend. To the international scoreboard: Wall Street closed lower overnight. The Dow Jones industrial average lost 8 points. The S&P500 Index slipped 3 points and the NASDAQ fell 6 points.
European markets were higher: London’s FTSE rose 40 points, Paris added 21 points and Frankfurt also up 31 points.
Asian markets were also stronger: Hong Kong’s Hang Seng rose 366 points. Tokyo’s Nikkei added 173 points and China’s SSE Composite lifted 61 points.
Looking at Metals: Gold fell $6.70 to US$1013.50 an ounce for the December contract on Comex. Silver lost 17 cents to US$17.27 and copper fell 4 cents to US$2.90.
And finally, oil fell 4 cents to US$72.47 a barrel for October light crude in New York.
